Euro slips lower against dollar to $1.2751

The euro continued its downward slide in European trading on Thursday, battered by fears that the financial crisis that has enveloped Greece may infect Portugal and Spain.

The euro has dropped to lows last seen in early 2009 as markets debate whether a planned euro110 billion ($142 billion) European Union and International Monetary Fund bailout will stem Greece's woes and whether other countries in the euro zone could be at risk.

The 16-nation currency went as low as $1.2738 in trading Thursday before recovering slightly to $1.2751. That's still below the $1.2827 it bought the day before in New York trading.

Moody's Investor Services said it may …